Price per person is not banquet profit: when sales and F&B are not aligned
Hotel conferences and banquets: how gaps between sales and F&B hide the cost of promises, service and extras.
The event is booked. Has it been costed properly?
Sales confirms the event. Guest numbers are agreed, the menu is selected and the price per person is accepted. Another conference or banquet goes into the diary.
Only during preparations does it emerge that the client was promised early access to the room, an extra coffee break, separate menus for several guests and extended evening service. The kitchen hears about changes at the last minute, while the F&B manager searches for additional staff.
The event may go well and the guests may be happy. But did the hotel make the return it expected?
What does the price per person really cover?
A per-person price is a convenient way to present a proposal. Problems begin when costing stops at the selling price and the ingredients in the menu.
Delivering the event also involves:
- Setting up the room and tables and returning the space to normal use afterwards.
- Kitchen preparation, service, dishwashing and cleaning.
- Additional team hours or external staff.
- Drinks and replenishing buffets and coffee breaks.
- Linen laundry, disposables, transport and equipment hire.
- Changes in guest numbers, special requirements and extended event hours.
Every promise has to be delivered
These costs do not all need to appear as separate charges in the client proposal. They do need to be included in the internal calculation.
“We can add coffee.” “You can have the room from the morning.” “An extra hour will be fine.”
For sales, these concessions help secure a booking. For F&B, they mean specific tasks, product usage and working time.
Early room access may require setup the previous evening. An extra coffee break involves preparation, replenishment and cleaning as well as coffee. Extending a banquet can add hours for several team members.
If these commitments never reach the costing, the hotel is selling a wider service than it has priced.
The problem is not that sales wants to sell
Sales needs to win clients. F&B needs to deliver events effectively. Conflict arises when departments use different information and work towards different priorities.
Sales sees the contract value. The kitchen sees portions and preparation time. Service sees staffing, room setup and guest requirements. The owner sees revenue, but not always the full delivery cost.
If no one brings this information together before the proposal is sent, profitability is only assessed after the event, when most decisions can no longer be changed.
One event, shared information
A single, up-to-date event sheet should underpin cooperation. It should cover not just the menu and attendance, but preparation and service times, room layout, drinks, equipment, extras and responsibility for delivery.
Clear rules are also needed:
- What sales can agree independently.
- Which changes require consultation with F&B.
- Who approves discounts and complimentary extras.
- When the client must confirm final guest numbers.
- How the costing is updated when the scope changes.
Properly costed packages make selling easier
The head chef does not need to approve every standard proposal. Properly costed packages can speed up sales. Consultation is particularly important for exceptions that change costs or the team’s ability to deliver.
After the banquet, review the result as well as guest feedback
Compare the plan with what happened: revenue after discounts, food and beverage consumption, working hours and additional purchases and services.
Allocate costs consistently. If the same team covers breakfast, the restaurant and a banquet, leaving all labour in the restaurant’s costs makes the banquet appear more profitable than it really was.
Distinguish costs incurred specifically because of the event from an allocated share of common costs. This supports both individual booking decisions and a longer-term assessment of the banqueting business.
Consider the hotel’s other operations too. An event may look good in its own accounts while overloading the kitchen and reducing service quality for restaurant guests.
How Hospitality Pro can help
I examine the whole event journey: from the enquiry and proposal through costing and handover to delivery and reconciliation.
I check whether the price covers the promises made, how labour costs are allocated and where changes stop reaching other departments. I help establish practical rules for costing, approving exceptions and sharing information between sales and F&B.
This problem can be a starting point for a Focus Audit, with an agreed scope around event organisation and reconciliation. If it also affects the hotel’s other F&B outlets, a wider review may be appropriate.
Sales should know what it can promise. F&B should know what it must deliver. The owner should know what remains after those promises have been fulfilled.